Sprouts Farmers Market closes $600 million revolving credit facility
Investing.com - Goldman Sachs raised its price target on TSMC (NYSE:TSM) to NT$1,210 from NT$1,145 on Monday while maintaining a Conviction Buy rating, citing stronger demand for advanced chip packaging technologies. The semiconductor giant, currently trading near $222 and showing strong momentum with a 29% return over the past year, appears slightly undervalued according to InvestingPro analysis.
The investment bank increased its earnings forecast for TSMC by 2-6% for 2025-2027, driven by higher wafer revenue projections for 3nm and 5nm processes. Goldman Sachs noted it has "easing concern over further AI order cuts" due to decreasing mismatches in the supply chain. With impressive revenue growth of 40% in the last twelve months and a robust financial health score of 3.43/5 on InvestingPro, TSMC continues to demonstrate strong operational performance.
Goldman Sachs significantly raised its forecast for TSMC’s CoWoS (chip on wafer on substrate) shipments to 664,000 units in 2025, 1,080,000 in 2026, and 1,566,000 in 2027. Previous estimates were 585,000, 923,000, and 1,287,000 units respectively. TSMC’s market leadership is reflected in its strong margins, with a gross profit margin of 57.4% and an attractive P/E ratio of 20.2.
The firm expects CoWoS demand to grow as chiplet designs expand beyond AI applications into smartphones, servers, networking, and other segments. This diversification supports "a more sustained and diversified demand ramp in CoWoS," according to the investment bank.
Goldman Sachs also increased its capital expenditure forecasts for TSMC to $42 billion in 2026 and $50 billion in 2027, up from previous estimates of $40 billion and $48 billion, reflecting a more positive outlook on CoWoS expansion.
In other recent news, Taiwan Semiconductor Manufacturing Company (TSMC) has been highlighted by several analyst firms for its potential growth and strategic advancements. Goldman Sachs added TSMC to its APAC Conviction List, projecting significant revenue growth driven by AI and high-performance computing demands. Citi reiterated its Buy rating on TSMC, citing confidence in the company’s technological advancements, particularly in 2nm technology and AI sectors. Meanwhile, Morgan Stanley (NYSE:MS) adjusted its price target for TSMC, lowering it to TWD2,330, but maintained an Overweight rating, emphasizing the positive impact of AI investments from firms like Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT).
Daiwa Securities upgraded TSMC’s stock rating from Outperform to Buy, despite a slight reduction in the price target, reflecting confidence in TSMC’s robust revenue performance and growth potential in AI and GPU technologies. Bernstein maintained an Outperform rating on TSMC, with a price target of $251, focusing on the company’s leadership in advanced packaging technologies. The analysts at Bernstein highlighted the strategic importance of TSMC’s shift from Integrated Fan-Out to Chip-on-Wafer technology, which is expected to sustain its competitive edge. These recent developments underscore TSMC’s pivotal role in the semiconductor industry and its potential for continued growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.